I was testing the Fists of Fate (eternal realm, wearing only 1 wand, FoF and a Legacy Shako) with the Damage Variance turned off and the damage effect could be clearly seen with skills of direct damage.
For example, Frost Bolt would deal 30 to 1000 damage.
But when I tried Incinerate, Firewall, Blizzard and Fire Bolt dot effect, the damage was constant…
So I guess the damage effect of FoF does not work with DOTs (and/or Channeling?).
Maybe it follows the same rules os Overpower, so if the skill can’t Overpower it will also not be affected by the damage effect of FoF.
Can someone confirm this?